The Zimbabwe Cross-Border Traders’ Association (ZCBTA) and the Confederation of Zimbabwe Industries (CZI) are finalising a business linkage agreement which will put more focus on locally-produced goods with a potential to increase exports.
BY TATIRA ZWINOIRA
The agreement enables cross-border traders to have direct access to manufacturers’ goods.
The manufacturers will use the cross-border traders to market their goods outside the country.
ZCBTA secretary-general Augustine Tawanda told NewsDay last week the deal would allow cross-border traders to reduce their dependency on imported goods.
“We have agreed on the business linkage programme which will see traders working together with industry to try and also facilitate the livelihoods of traders. We have agreed with CZI and are going to be working with them so that there is business between manufacturers and traders,” he said.
Tawanda said the small-scale traders would become “runners” for industry, marketing or exporting goods produced by local manufacturers.
“Small-scale traders have a capacity to find markets, where the big players are not able. So we have an arrangement where these market finders can access goods from the manufacturers and export to other markets.”
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The engagement between CZI and ZCBTA began early this year with an agreement expected in the next two weeks.
CZI president Busisa Moyo said the agreement would allow members of ZCBTA to access locally-manufactured products since some products were on the restricted imports list.
“This is also backed by support for credit through a local bank and the European Union under the International Trade Centre-Trade and Private Sector Development Programme. The partnership will see special buying terms in recognition of the fact that cross-border traders are businesspeople engaged in enterprise, the special features which will be unveiled at the official launch scheduled for later this month,” Moyo said. “For manufacturers, this presents a new channel of distribution for products to reach the end consumer and a balanced dissuasion from imports which compete with local products.”
CZI deputy president Sifelani Jabangwe said manufacturers were expected to increase sales volumes by tapping into the multitudes of cross border traders.
Once signed, the agreement will seek to plug a daily estimated $1,15 million loss in cash exiting the market for imported goods from cross-border traders.
This comes as the manufacturing sector has dropped in recent years to contributing 13% or $1,8 billion to the gross domestic product from a peak of 32% or $4,47bn.
Industry and Commerce minister Mike Bimha welcomed the programme, as he said government would support initiatives that encourage more business, more focus on locally produced goods and less imports.
“The issue is to change your focus, you can still continue to do your job and be involved in cross border trading but focus on those things that we still need and not what we can produce,” he said.
